India: BigMint's billet index falls further by INR 350/t d-o-d - 6 June'24
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- Buyers hesitate to fix deals at higher prices
- Transaction volumes remain moderate
BigMint's billet index dropped again today by INR 350/tonne (t) to INR 44,200/t exw Raipur on 6 June, 2024.
The index declined as lower bids were heard, and the purchasers in the market were unwilling to buy at higher offers due to the steady movement of finished goods. However, buying activity was reported to be reasonable for semi-finished and finished steel products.
Total transactions were 1,760 t, up from 1,200 t on 5 June.
In the finished steel market, rebar prices in Raipur dropped INR 300/t d-o-d. Wire rod prices decreased by INR 500/t and 700 t of volumes were heard traded. Sponge iron prices declined by INR 450/t.
The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 16,350/t.
Rationale -
This index has been derived based on transactions, offers, bids and indicative price data sets. Transactions are considered as T1 and given a weightage of 50% whereas other data sets are considered as T2 and given a weightage of the balance 50%.
- Transactions (T1) - Three trades at INR 44,100-44,200/t were recorded during the 2:30 pm to 5:30 pm BigMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 44,171/t which is given a 50% weightage in the final price calculation. .
- Other Price Indicators - bids/offers/indicative (T2) - Six offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 44,266/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,219/t, rounded to INR 44,200/t exw.
Click for detailed methodology
T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology
